Tag Archives: DOL

DOL’s New “White Collar” Exemption Rule To Impact Health Care Industry

Act-Now-Advisory-BadgeOur colleagues, Michael S. Kun, Member of the Firm, and Jeffrey H. Ruzal, Senior Counsel, at Epstein Becker Green, have written an Act Now Advisory that will be of interest to many of our readers: DOL’s New “White Collar” Exemption Rule Goes Into Effect on December 1, 2016.

On May 18, 2016, the U.S. Department of Labor (“DOL”) announced the publication of a final rule that amends the “white collar” overtime exemptions to significantly increase the number of employees eligible for overtime pay. The final rule will go into effect on December 1, 2016.

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ILN Today Post

Employers Face Significant Increase in Required Salary Level for Overtime-Exempt Employees

The U.S. Department of Labor (DOL) recently issued its Final Rule addressing the minimum salary requirements for employees who are classified as exempt from overtime pay.

Under the Fair Labor Standards Act (FLSA), employees who are exempt from overtime under the commonly utilized executive, administrative and professional exemptions must: (1) be paid a predetermined and fixed salary that cannot be reduced based on variations in the quantity or quality of work performed; (2) be paid at a specified minimum salary level; and (3) perform primarily executive, administrative or professional duties, as defined in the FLSA regulations.

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DOL Announces Final FLSA Overtime Regulations

E. Jason Tremblay

E. Jason Tremblay

On Wednesday, May 18, 2016, the U.S. Department of Labor’s (DOL) Wage and Hour Division released its final updated FLSA overtime regulations. While some of the changes were expected, there are a number of surprises.

First, the new salary threshold for exempt executive, administrative and professional employees will be $47,476.00 per year (or $913.00 per week). That is more than double the current $455.00 per week but less than the original proposal, which would have boosted the minimum annual salary threshold to over $50,000.00 per year.

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Employers: DOL Final White Collar Exemption Rule Takes Effect on December 1, 2016

Our colleagues Jeffrey Ruzal and Michael Kun at Epstein Becker Green have a post on the Wage & Hour Defense Blog that will be of interest to many of our readers in the hospitality industry: “DOL Final White Collar Exemption Rule to Take Effect on December 1, 2016.”

Following is an excerpt:

Nearly a year after the Department of Labor (“DOL”) issued its Notice of Proposed Rulemaking to address an increase in the minimum salary for white collar exemptions, the DOL has announced its final rule, to take effect on December 1, 2016.

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DOL Final White Collar Exemption Rule to Take Effect on December 1, 2016

Nearly a year after the Department of Labor (“DOL”) issued its Notice of Proposed Rulemaking to address an increase in the the minimum salary for white collar exemptions, the DOL has announced its final rule, to take effect on December 1, 2016.

While the earlier notice had indicated that the salary threshold for the executive, administrative, and professional exemption would be increased from $23,660 ($455 per week) to $50,440 ($970 per week), the final rule will not raise the threshold that far.  Instead, it will raise it to $47,476 ($913 per week).

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DOL Releases New Poster and Employer’s Guide to FMLA

Financial services employers should note that the Department of Labor’s Wage and Hour Division (“DOL”) has just released a new Family Medical Leave Act (“FMLA”) poster and The Employer’s Guide to The Family and Medical Leave Act (“Guide”).

New FMLA Poster

The FMLA requires covered employers to display a copy of the General FMLA Notice prominently in a conspicuous place. The new poster is more reader-friendly and better organized than the previous one. The font is larger and the poster contains a QR code that will connect the reader directly to the DOL homepage. According to the DOL, however, the February 2013 version of the FMLA poster can continue to be used to fulfill the FMLA’s posting requirement.

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ILN Today Post

DOL Takes on Misclassification of Employees as Independent Contractors

The U.S. Department of Labor’s Wage and Hour Division (WHD) has significantly stepped up its efforts to reduce the misclassification of workers as independent contractors under the Fair Labor Standards Act (FLSA). In 2015 alone, WHD investigations resulted in more than $74 million in back wages for more than 102,000 workers in a variety of industries.

An employer’s failure to properly classify its workers could result in liability for years of unpaid wages, benefits, and employment taxes, in addition to penalty fees. In addition, a misclassification also could result in employers having to defend costly class action litigation, as well as manage investigations by the WHD (or equivalent state agencies).

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DOL’s Continued Expansion of Worker Coverage Remains a Top Wage and Hour Concern

The DOL has been steadfast in expanding worker coverage under the Fair Labor Standards Act (“FLSA”), and the financial services industry, like most, will be affected. The DOL’s initiative began on July 6, 2015, when it published a Notice of Proposed Rulemaking (“NPR”) that is expected to extend overtime protection to almost five million white-collar workers who are currently not entitled to overtime pay because they are classified as exempt. The NPR, which is expected to be finalized in July 2016, will likely more than double the salary threshold to qualify for FLSA exemption under the executive, administrative, or professional exemption, increasing it to $970 per week, or $50,440 per year. In addition, the highly compensated employee exemption, which, if satisfied, lightens the duties requirements of the executive, administrative, or professional exemptions, is expected to increase from $100,000 to $122,148. Once in place, these salary threshold requirements are expected to increase annually to adjust for inflation, which has not previously been the case.

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FLSA Settlement Terms: Be Sure They’ll Pass Judicial Muster

Brian W. Steinbach, attorney at Epstein Becker Green, has a post on the Hospitality Labor and Employment Law Blog that will be of interest to many of our readers: “Southern District of New York’s Rejection of FLSA Settlement Highlights Need to Settle on Terms That Will Pass Judicial Muster.”

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Wage and Hour Division Offers Guidance on Joint Employment – Employment Law This Week

The top story on Employment Law This Week – Epstein Becker Green’s new video program – is the Department of Labor’s Wage and Hour Division’s new interpretation of joint employment.

The federal Wage and Hour Division issued an Administrator’s Interpretation with new guidelines for joint employers under the FLSA and Migrant and Seasonal Agricultural Worker Protection Act. The Division makes it clear that it believes employers are regularly part of joint employment relationships with their vendors and business partners. If an employee files a claim or lawsuit and a joint-employment relationship is found, both employers can be found liable for violations. Michael Thompson, co-editor of this blog, explains it more in depth on the show.

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